Flat Al Scrap Price in Tokyo for 2H of June

Aluminium scrap dealers agreed with secondary alloyed aluminium makers to leave the scrap price almost unchanged around Tokyo for second half of June shipment. The dealers could not increase the scrap selling price due to lower primary aluminium price despite of better demand. However, the dealers increased lower transaction price of used beverage can. The scrap price would increase for July.

The dealers’ scrap shipment is increasing due to recovery of secondary aluminium shipment for automobile. The dealer sources said secondary aluminium makers’ UBC purchase price increased to 130-132 yen per kilogram while the price was less than 130 yen before.

The aluminium sash scrap price is 135-140 yen per kg at makers’ purchase price. The export price for South Korea is 142-143 yen at port yard. One dealer source said the export margin is thinner.

The aluminium base metal price is 181-183 yen per kg for ADC 10 grade at makers’ purchase price. Some makers apparently increase the raw material inventory with expectation for higher raw materials market when supply of used automotive engine remains low.